What You Can Learn from the Ultra-Rich

TruePoint Capital

So what about the ultra-rich who retired in their 30’s, 40’s? I’m not talking about trust fund babies. I’m talking about the self-made millionaires and billionaires.

What did they do differently than the middle class?

If you look at the list of mistakes listed below, the ultra-wealthy did almost everything the exact opposite of the middle class:

  • They didn’t short cut anything. They didn’t leave anything to chance. They took control of their money and owned their success.
  • They made plans and had goals.
  • They minimized debt and expenses.
  • They maximized their earnings and savings.
  • They educated themselves on investment matters and looked at the investment habits of the ultra-wealthy who came before them.
  • They know precisely how much they need to retire.
  • They planned and executed their investment strategy from day one.
  • They avoided speculative investments, preferring to invest for the long-term in proven investment assets and classes.
  • They sought out passive income opportunities and poured their hard-earned savings into these investments to generate multiple streams of income.

Where Do The Ultra-Rich Put their Money

The ultra-wealthy are already retired.

If they’re working, it’s because they choose to work and not because they have to work. They made it possible through their investment choices – opting for alternative passive income streams shielded from Wall Street volatility.

Here’s how they invest:

They avoid what’s safe – The ultra-wealthy avoid Wall Street volatility and speculation for building wealth. They avoid safe but underpaying mutual funds, ETFs, and financial advice in favor of what’s uncomfortable, but with the promise of a more substantial reward.

They know what’s safe is not going to cut it. They have made their fortunes by not following the herd.

That’s why the ultra-wealthy prefer the alternative investment class.

Alternative investments, including venture capital, private equity, private real estate funds, commodities as well as real assets are uncorrelated to Wall Street and have historically yielded above-market risk-adjusted returns.

They Seek out Passive Income – Unless you create a stream of income that makes you money while you’re sleeping, you’ll always be working for your money instead of having the money work for you.

The wealthy seek out tangible assets that cash flow. Cash flowing businesses, real assets, agriculture, and commodities can all provide passive income essential for building wealth.

They Invest for the Long-Term – The ultra-wealthy don’t speculate. They invest for the long-term because they know that the most rewarding investments need time to gestate and mature like productive businesses, farms, and real assets.

Investing for the long-term also offers the opportunity to profit from appreciation.

They’re Willing to Defer to Others – The ultra-wealthy are not prideful enough to think that they could invest in anything and anywhere and be successful.

They’re willing to defer to the experience and expertise of others who may be in a better position to maximize opportunities and profits in a specific asset class, with a particular investment strategy or in a specific geographic location.

They aren’t afraid to defer to someone else’s expertise if it ends up making them more money in the long run or advancing their goals.

The middle class doesn’t have to keep winging their retirement and leave their future to chance.

It’s never too late, but it starts with a plan and small steps like reducing unnecessary debt and expenses to allocate that extra capital to income-generating alternative investments.

Kyle Jones

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